Winter Storms + Wind Farms = Falling Electricity Prices

[Originally published at CleanTechnica on 4.18.2008] The powerful winter storms that moved across Europe in March precipitated a considerable spike in electricity supply on the European grid, thanks to continental wind farms.

Wind speeds of 100 mph were recorded across Europe and topped 135 mph at the Czech Republic’s highest mountain, Snezka. The surplus electricity on the grid, produced mostly by German and Danish wind farms pushed prices down by 12% on the spot market.

Traders buying and selling round-the-clock power reported that the ‘day ahead’ price in central Europe’s power market dropped to €49.5 ($76) per megawatt hour compared with €56 at the end of the previous week, according to a piece at Planet Ark. Unfortunately, the article also suggests that sudden drops in electricity prices on the spot market have little effect on end-use rates.

This story points out one of the most persistent ‘problems’ of large-scale wind energy development- how do we address the peaks and valleys on the grid presented by wind power, and how do we reconcile those with power plants which cannot be easily adjusted to deal with those peaks?

Several options of dealing with the storage issue have emerged including compressed air, hydro pump-backs, and more efficient flywheel designs. These are all good steps, and more will undoubtedly emerge. That is why it is important that the ‘problem’ of storing wind energy be framed as an opportunity for technological innovation, and not as a justification for more coal-fired power plants.

Photo: © Kamil Sobócki | Dreamstime.com

Data: US Electricity Rates Vary. But, They're All going Up

The differences between what people pay for electricity across the country are substantial. But one thing that nearly ratepayer knows is that electricity rates are on the rise. The table below shows just how wide the disparity (source: JEA - the electric utility for Jacksonville, FL). There are certainly rates higher and lower than these, but this is only a survey and I do not know the methodology. What I find most striking is the high price of electricity in Alaska which is an indicator of the high price transmission. If there were more microgrids and distributed generation, Alaska would have cheaper rates. (Note: to determine the price per kilowatthour just move the decimal three places to the left - i.e. Fairbanks pays $0.178/kwh)

Quarterly Rates Quarterly survey - January 2008 (per 1,000 KWH) COMPANY LOCATION KWH1000 Golden Valley Electric Assoc.*** Fairbanks, AK 178.07 PECO Energy Co.* Philadelphia, PA 153.68 San Diego Gas & Electric Co.* San Diego, CA 152.05 City of Ft. Meade** Ft. Meade, FL 145.86 Public Service Co. of N.H.* New Hampshire (Portions of) 143.17 City of Tallahassee** Tallahassee, FL 140.90 City of Dover (McKee Run G.S.)** Dover, DE 139.48 Baltimore Gas & Elec. Co.* Baltimore, MD 138.30 Public Service Electric & Gas Co.* Newark, NJ (Other portions of NJ) 137.23 Pascoag Fire District** Pascoag, RI 134.95 Keys Energy Services** Key West, FL 132.84 City of Vero Beach** Vero Beach, FL 132.17 Chugach Electric Assoc., Inc.*** Anchorage, AK 131.41 Southern California Edison* Southern California 129.12 Sierra Pacific Power Co.* Reno, NV 128.38 City of Ocala** Ocala, FL 127.32 Nevada Power Co.* Las Vegas, NV 125.36 Ft. Pierce Utilities** Ft. Pierce, FL 122.00 Beaches Energy Services Jacksonville Beach, FL 119.23 Gainesville Regional Util.** Gainesville, FL 118.54 City of Lakeland** Lakeland, FL 118.23 Sacramento Mun. Util. Dist.** Sacramento, CA 117.64 City of Bartow** Bartow, FL 115.93 We-Energies* Milwaukee, WI 114.62 City of Clewiston** Clewiston, FL 113.23 Kissimmee Utilities** Kissimmee, FL 112.07 Progress Energy Florida* St. Petersburg, FL 112.05 Department of Water & Power** Los Angeles, CA 109.05 Commonwealth Edison Co.* Chicago & Northern IL 107.10 South Carolina Electric & Gas * Columbia, SC 105.62 Entergy Gulf States,Inc.* Baton Rouge, LA (& other parts of LA) 104.56 Alabama Power Co.* Alabama (Portions of) 104.20 Florida Power & Light Co.* Miami, FL (& other portions of FL) 103.00 Okefenoke REA*** N.E. FL & S.E. GA 103.00 Gulf Power Co.* Northwest Florida 102.93 Orlando Utilities Commission** Orlando, FL 97.95 Clay Electric Cooperative*** Clay County, FL 97.50 JEA** Jacksonville, FL 95.93 Utah Power* Salt Lake City, UT 93.99 Progress Energy Carolinas* Raleigh, NC 93.53 Georgia Power Co.* Atlanta, GA (Other port. of GA) 91.31 Tucson Electric* Tucson, AZ 85.97 Pacific Power* Oregon 85.92 Santee Cooper South Carolina (Portions of)**** 82.86 Elec. Power Board of Chatt.** Tennessee (Portions of) 81.97 Marietta Board Light & Water** Marietta, GA 78.99 Memphis Light Gas & Water Div.** Memphis, TN 77.37 Omaha Public Power District**** Southeast Nebraska 76.91 Albany Water, Gas & Light Comm. Albany, GA 75.70 City Public Service** San Antonio, TX 75.32 Monongahela Power Company* Northern West Virginia 72.52 Appalachian Power Co.* Roanoke, VA 71.96 Dalton Utilities** Dalton, GA 66.84 Seattle City Light** Seattle, WA 62.20 AmerenUE* St. Louis, MO 58.85 (Provided by JEA) Includes base rate, fuel adjustment charge, and applicable franchise fees. * Investor-owned Systems ** Municipal Systems *** Rural Electric Coop. Systems **** Federal, State & District Systems

What are the Alternatives to Electricity Rate Hikes?

Ft. Collins, CO – The electric co-op that serves over 30,000 residential and business customers in rural portions of Larimer, Weld, and Boulder counties in Northeast Colorado, has increased its electricity rates 24 percent over the last three years. But the Poudre Valley Rural Electric Association (PVREA) is hardly alone. In response to these un-relenting rate hikes and over-reliance on coal-fired power, the Colorado non-profit group PV-Pioneers, has proposed an alternative plan that would encourage reductions in demand by focusing on energy efficiency and the principle of avoided costs.

The proposed plan suggests that the REA could finance Home Energy Makeovers for members who need them the most, and can afford them least. REAs and co-ops are in a position to make these loans because of their ability to secure no-interest federal loans themselves. The program would allow structural energy efficiency improvements including permanent housing weatherization improvements, replacement of inefficient appliances, or even just the replacement of incandescent with compact fluorescent or LED lighting.

PVREA's current assistance program - like many energy assistance programs across the country - help people pay their bills when they cannot afford to pay themselves. These programs can be incredibly helpful. But the problem is they create little incentive to permanently reduce those bills. They really mask the problem, rather than addressing some of the root causes.

This program is being presented as an alternative to rate increases that PVREA will have to absorb if its wholesale provider, Tri-State G&T continues its search to find somewhere to build a new coal-fired power plant. Just last month, Tri-State made national headlines when they, along with Sunflower Electric of Kansas, were denied an air permit by the Kansas Department of Health for a proposed expansion of the Holcomb coal-fired power plant in Southwestern Kansas.

The PV-Pioneers is a Colorado non-profit group made up of Poudre Valley Rural Electric Association members from Larimer, Weld, and Boulder counties. The group works to keep future rates down, to promote energy efficiency programs and to facilitate the generation of locally abundant renewable energy resources.
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Straw Poll: How much do you pay for electricity?

In light of my most recent post about the so-called "externalities" of coal-fired power, I thought I might add a participatory element the discussion that'll add some context. So, in the name of 'science' please visit ecopolitology (if you're not already here) and answer one simple poll question: How much do you pay for your electricity? (2 seconds and no strings!)

If you don't know, look at your most recent electric bill. Otherwise you can probably find your rates online. I encourage and welcome votes from all cities, counties, states, provinces, territories and countries. Thanks!

Source: Energy Information Administration, Form EIA-861, “Annual Electric Power Industry Report.”(2006)